Nobel laureate economist Robert Merton says David Murray’s Financial System Inquiry must fundamentally shift how Australia thinks about superannuation. He says the desire to maximise lump-sum balances at retirement is excessively risky; the focus should be on ensuring retirement income is enough to meet a desired standing of living. Source: AFR – 6 Nov 2014 …
Category Archive: Lifecycle Investing
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May 05
Revisiting Asset Weighted Returns and the Lifecycle Fund
Given the start of MySuper this year, superannuation trustees have released numerous lifecycle funds to satisfy this new legislation. Whilst lifecycle funds have been popular among superannuation trustees, the investment and adviser community haven’t been so complimentary. Either way, lifecycle funds definitely have a place in the investment landscape and they provide an approach to …
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Mar 27
Does our Super have too much in equities?
Over the last couple of weeks I’ve been asked to comment on the asset allocations of default super funds. There’s certainly been a very interesting debate through the print media which was probably started by David Murray, Chairman of the Future Fund, last year when he stated that Austrlaian Super Funds were too heavily invested …
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Oct 10
Asset Allocation that considers Asset Weighted Returns
My earlier posts on asset-weighted returns got me thinking about how to apply this thinking throughout the working life of a superannuation member so I did this little exercise. I know this has probably been done to death by the lifecycle investment gurus out there but I thought I’d see for myself what I would …